The legacy you leave in this life is the result of the decisions you make throughout it. Do you make the decision to invest in income producing assets such as property or blow your hard earned income on a new car and holiday. Delayed gratification is often an easier principle than it is a reality. I'll be honest, it wasn't until i was introduced to the power of residual income and idea of buying/building income producing assets that i even thought about what i would be able to acquire for the future. I was probable approaching 30 at this point. When you're young, travelling exploring the world there are much more fun things to give your attention to than future estate planning. As you get older, and the trappings of life creep up on you, family, children, a place to call home, so does thinking about what you will leave behind when you're gone, or pass onto the next generation. What impact will you have on the world.
Property ticks so many boxes for us, it provides us with monthly income. Re-investing any surplus income back into more property allows us to compound this income, while at the same time building our portfolio and acquiring more of these income producing assets.
Each of these properties also, in general terms, tend to go up in value over time, a great hedge against inflation - You often hear the phrase "property doubles in value every 10 years' - while that isn't quite true or correct there is over time an significant upwards trend in the value of property. Now we never invest in property hoping or counting on it going up in value, thats just speculation. We are investors, we buy at the right price, add value through refurb or conversion, hold great equity from this moment forward and benefit from great monthly cashflow. Any growth over time is an added bonus, but this means we can leave an even more substantial estate for future generations. A £50,000 debt on an £80,000 property today is one thing, but hold that property for 30 years and a £50,000 debt on a £300,000+ property for arguments sake isn't too much of a worry. We will leave the discussion of should we pay the debt down, just pay the interest or keep refinancing to a reasonable LTV, for another post, as its down to personal choice and circumstances.
We, as a company, and as a family want to be able to take care of our family and future generations, help them get on the property ladder, get ahead in life a bit. Which lets face it is getting harder and harder for the future generations. Most of the investors we work with want to do the same as well, they want to build their own nest egg, often so they can help and support their families and leave a significant amount to children and grand children when the time finally comes. So thats what we are doing - working with people helping them grow their current pot, at a rate better than the banks can offer.
Legacy can also mean the impact you leave behind, on others and physical environment. We started with just BTL investment properties, then moved into HMO's etc for income then onto developing property on a bigger scale - our focus now allows us to leave our mark on the landscape. To take unloved or rundown buildings and transform them into great places for people to live or call home. So when we drive past our projects in future years I can be that annoying dad that points out to the kids, we did that. We converted that, we built that. At Kieba Property we want to be creating properties we can be proud of and people can call home for many years to come.
Have you thought about what you want to leave behind or pass onto future generations. I suggest you do. It can be quite an eye opening conversation with yourself. What decisions are you making at the moment that will mean you can leave the mark you want on this earth. Give us a shout if we can help get things moving at all.
Comments